Notes summarized by:

Chona Pajarillo-Agustin, DPA

Associate Professor 1
 GLOBALIZATION
 viewed as primarily an economic
process that affects the integration of
national products to the world
markets
 refers to the continuing integration of
technological processes to many
countries and the uprising of business
from the developed, developing and
under develop countries.
 refers to the development of global or
worldwide business activities,
competition and markets and the
increasing global interdependence of
national economies
 the process by which the world,
previously isolated through physical
and technological distance, becomes
increasingly interconnected.
the process of intensification of
economic, political, social and
cultural relations across
international boundaries which
principally aimed at the
transcendental homogenization of
political and socio-economic
theory across the globe.
 process of growing exchange,
interaction and integration between
people, governments and private
organizations across the globe.
International trade, capital flows,
migration, technological transfer
and cultural exchanges are some of
the typical manifestations of this
process
it represents the global integration
of international trade, investment,
information technology and
cultures
equated with progress and
economic growth and generally
supported.
 the expansion (both the creation of
new social networks and the
multiplication of existing connections
that cut across traditional political,
economic, cultural , and geographic
boundaries) and intensification
(expansion , stretching and acceleration
of these networks)of social relations
and consciousness across world-time
and across world-space--Manfred Steger
 PHILOSOPHIES OF
GLOBALIZATION
 Globalization is about the Liberalization and Global
Integration of Markets.
 This is anchored in the neo-liberal idea of the self-
regulating market as the normative basis for a future
global order. According to this, the vital functions of
the free market- its rationality and efficiency , as well
as its alleged ability to bring about greater social
integration and material progress -can only be
realized in a democratic society that values and
protects individual freedom. (Steger, 2005)
  Globalization is Inevitable and
Irreversible

 According to the market-globalist,

globalization reflects the spread of
irreversible market forces driven by
technological innovations that make the
global integration of national economies
inevitable.(Steger, 2005)
  Nobody is in Charge of Globalism

 Globalization hinges on the classical liberal

concept of the “self-regulating market”.
According to Rebert Hormats (1998) vice
chairman of Goldman Sachs International,
the great beauty of globalization is that no
one is in control. The great beauty of
globalization is not controlled by any
individual, any government, any institution
(Steger, 2005).
 Globalization benefits everyone in the long
run.

 This lies at the heart of market globalism

which is unpacked on in material terms
such as economic growth and prosperity. In
terms of the globalism concept, it taps not
only liberalism progressive worldview, but
also draws on the powerful socialist vision
of establishing economic paradise on earth
(Steger, 2005).
 Globalization Furthers the Spread
of Democracy in the World

 This links ‘globalization’ and ‘markets”

to the concept of democracy which
plays a significant role in liberalism ,
conservatism, and socialism. Globalist
tend to treat freedom, free markets,
free trade and democracy as
synonymous terms.
 According to Francis Fukuyama (2000) ‘
there exist a clear correlation between
country’s level of economic development
and successful democracy”. Though it is
true that globalization and capital
development do not automatically create
democracies, Fukuyama believe that the
“level of economic development resulting
from globalization is conducive to the
creation of complex civil societies with a
powerful middle class which facilitates
democracy”. (Steger, 2005:32)
CHARACTERISTICS/FEATURES OF GLOBALIZATION
 An increase in imports and exports
 Growing importance on MNCs
 Increased foreign investments
 Increased movement of labour
 Increase in capital transfers across
national borders
 Globalization of technology
 Increased in tourism
 Global interdependence
 ELEMENTS OF GLOBALIZATION
A. GLOBALIZATION OF MARKETS

-refers to the merging of historically

distinct and separate national
markets into one huge global
marketplace
(Ex: same products offering
worldwide like McDonald’s,
Starbucks, Cars, Computer software)
 B. GLOBALIZATION OF
PRODUCTION

-outsourcing (hiring other

companies to do some of their
work) of productive activities to
different suppliers results in the
creation of products that are
global in nature
 C. FALLING BARRIERS TO TRADE
AND INVESTMENT

-A government imposed restriction on the free

international exchange of goods or services.

Trade barriers are generally classified as:

a. import policies reflected in tariffs and other

import charges, quotas, import licensing,
customs practices,
b. standards, testing, labeling, and various types
of certification
c. direct procurement by
government
d. subsidies for local exporters
e. lack of copyright protection
f. restrictions on franchising,
licensing, technology transfer
g. restrictions on foreign direct
investment
D. TECHNOLOGICAL INNOVATION

-technological changes have

achieved advances in
communication, information
processing, and transportation
technology, including the internet
MAJOR TYPES OF GLOBALIZATION
Economic
Cultural
Political
Financial
Technological
Ecological
sociological